The Hispanic Grocery Cart - US - September 2010

Hispanic consumers spend more per year on groceries than any other ethnic group and their purchasing power of $951 billion exceeds that of any other U.S. minority. Yet, grocery advertising targeted specifically to the Hispanic consumer is sparse, especially to Spanish-speakers, who would like to make informed purchasing decisions in their own language so they can enjoy the grocery shopping experience to its full extent. Hispanics have a rich culinary tradition that calls for a variety of ingredients, leaving the door of opportunity open for a vast range of products to capture the attention of Hispanic shoppers. As more and more Hispanics acculturate, they are also on the lookout for convenience, making prepared, shelf-stable and frozen foods more desirable and in need of advertising to the Hispanic consumer.

Readers of this report will learn what Hispanics are putting in their grocery carts and how to compel the Hispanic consumer to purchase more of their products. This report provides analysis of Mintel’s exclusive consumer research and the cultural factors that can help enterprises understand these figures and develop their marketing strategies accordingly. Key topics include:

Why Hispanics spend more per household on groceries than any other U.S. ethnic group, and how stores and enterprises can capitalize on this fact

How the current economy has affected Hispanics’ grocery expenditures, including the products that are most purchased and those that are going into fewer of Hispanics’ grocery carts

Hispanics’ consumption of products in 10 named categories, such as breakfast foods, beverages, dairy, produce and snacks. These sections also offer insights and opportunities for selling these products to Hispanics based on their levels of acculturation, language preferences and other cultural factors

Methods of advertising groceries to the Hispanic consumer through television, internet and magazines, including strategies that have already been employed by companies and opportunities for new marketing strategies

A demographic overview of the U.S. Hispanic population, including information about households, national origin and geographical distribution, plus how these characteristics contribute to grocery purchases and how stores and manufacturers can market accordingly

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Table of contents

Scope and Themes

What you need to know

Definition

Data sources

Consumer survey data

Consumer Expenditure Survey

Advertising

Abbreviations and terms

Abbreviations

Terms

Generations are discussed within this report, and they are defined as:

Executive Summary

The Hispanic consumer

Where Hispanics shop for groceries

What influences the Hispanic grocery shopper

Baking products

Breads

Breakfast foods

Beverages

Condiments, sauces, seasonings, and oils

Dairy products

Desserts

Fruits, vegetables, and salad

Meats and fish

Ready-made and prepared foods

Snacks, cakes, and pies

Marketing strategies

Television

Online

Magazine

U.S. Hispanic population

Demographics

Acculturation

Insights and Opportunities

Food is love

Cooking like abuela

Fusion foods

The “New” Latina/Latino

Trend: Trading up, trading down, trading over

The Hispanic Consumer

Key points

Food expenditures

Figure 1: Average annual expenditures on food at home, by Hispanic origin, 2010*

Figure 2: Indices of average annual expenditures on food at home, by Hispanic origin, 2010*

Distribution of Hispanics’ food expenditures

Figure 3: Change in average annual expenditures on food among Hispanics, by expenditure category, 2005-10

Figure 4: Distribution of total expenditures on food among Hispanics, by expenditure category, 2005-10

Consumers’ average weekly expenditure on groceries

Hispanics spend the most on groceries

Figure 5: Amount spent on groceries in average week by race/Hispanic origin, February 2009-March 2010

The Hispanic grocery shopper

Household income impacts grocery expenditure

Figure 6: Amount spent by Hispanics on groceries in average week, by household income, February 2009-March 2010

Spanish-dominants spend more on groceries

Figure 7: Amount spent by Hispanics on groceries in average week, by language spoken in the home, February 2009-March 2010

Changes in grocery expenditures in the Hispanic household

Most Hispanics have changed their grocery spending habits

Figure 8: Changes in household spending on groceries among Hispanics, by household income, April 2010

Spanish-dominants are now spending more on groceries

Figure 9: Changes in household spending on groceries among Hispanics, by language spoken in the home, April 2010

By product category

Figure 10: Change in expenditure by grocery category, by Hispanics, April 2010

Where Hispanics Shop for Groceries

Key points

Retail preferences of the Hispanic consumer

English-dominant Hispanics prefer supermarkets

Figure 11: Retail preference by the Hispanic consumer when buying groceries, by language spoken in the home, April 2010

Lower-income Hispanics shop at a wider array of stores

Figure 12: Retail preference by the Hispanic consumer when buying groceries, by household income, April 2010

By presence of children in the household

Figure 13: Retail preference by the Hispanic consumer when buying groceries, by the presence of children in the household, April 2010

Frequency of shopping at supermarkets

By category and language

Figure 14: Propensity to buy grocery items at supermarkets, by language spoken in the home, April 2010

What Influences the Hispanic Grocery Shopper

Key points

Influencing factors when purchasing shelf-stable products

Spanish-dominants are now using more coupons

Figure 15: Factors that influence the Hispanic grocery shopper when purchasing shelf-stable products, by language spoken in the home, April 2010

Regardless of household income, more private label products are being purchased